IMF Raises India FY26 Growth Forecast

The International Monetary Fund (IMF) has revised India's growth forecast for the fiscal year 2025-26 (FY26) upward to 6.6%, a 0.2 percentage point increase from its previous estimate. This revision is primarily due to India's strong growth momentum in the first quarter of FY26, which saw the economy grow at 7.8%, largely offsetting the impact of increased United States tariffs on Indian imports. However, the International Monetary Fund lowered its growth forecast for FY27 to 6.2%, citing the continued impact of these tariffs. The World Bank Group also raised its FY26 projection for India to 6.5%. International Monetary Fund Managing Director Kristalina Georgieva affirmed India's growing economic significance, stating it is becoming a key engine for global growth. Other rating agencies like Fitch Ratings and S&P Global — CRISIL Ratings also provided their forecasts, with Fitch Ratings revising India's outlook to 6.9% and S&P Global — CRISIL Ratings maintaining 6.5%. The State Bank of India also raised its FY26 GDP growth projection to 6.8%.